Rock Quoted on Impact of Ending De Minimis on Retailers and Consumers

The duty-free exemptions ended in May for imports from China and Hong Kong, which accounted for approximately two-thirds of imports.

“Chinese retailers who previously utilized the de minimis program have likely begun to develop or update their import compliance programs to meet US Customs and Border Protection admissibility requirements,” he said. “They’ve also likely needed to increase their import bonds to account for the increased duties.”

Higher import costs for retailers means higher prices for consumers. “Duties, along with the administrative costs of adhering to admissibility requirements, will likely be passed on to US consumers,” Lucas said.

Though higher costs for imported goods may seem beneficial to US retailers, Lucas noted that the end of de minimis could add a layer of bureaucracy for stateside manufacturers.

“If US retailers purchase goods or materials that previously qualified for duty-free de minimis treatment, they will see the costs of these goods increase,” he said. “They may also need to develop import compliance processes they didn’t need to maintain previously.”

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